's 10-for-1 stock split is the latest in a string of higher-profile stock splits this year – with companies like Walmart and Chipotle citing a desire to make its stock more affordable to investors and employees alike.
is the third company with a share price over $900 to announce the stock split this year – Chipotle at over $3,100 and Lam Research at more than $960 – being the others. 's stock price could also open the door for its inclusion in the Dow Industrials – should that index committee feel the desire to add one of the world's biggest stocks to the blue chip average. The price-weighted Dow gives higher-priced stocks more influence, which makes it impossible for
to qualify at its current $1,000 price tag. However, a post-split price of $100 makes an inclusion more palatable since about one-third of the Dow's 30 stocks have share prices of around $100 or less. What could potentially replace in the Dow? Two tech stalwarts might be targets – fellow chipmaker Intel and networking equipment maker Cisco Systems. Both longtime Dow stocks currently have some of the smallest weightings in the index and have seen their businesses lag competitors in recent years. Those stocks have also drastically underperformed the broader market - Cisco down 3% and Intel up 7% over the past year, while the S & P 500 has risen 28%.
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